Sell Your Future Payments to Buy a New Home

If you’re like most Americans, buying a home will be one of the largest, and most important financial decisions you’ll ever make. Even if you’re looking at buying a small place, houses aren’t cheap.

If you’re looking at buying a place to call your own, getting enough money together to make an offer isn’t easy. Even if you have enough in your budget to cover the mortgage, you’ll still need money for a down payment. If you’re currently receiving payments from a structured settlement or annuity, one way to get the money you need is by selling some of your future payments.

Uses For Your Lump Sum

If you already have the money you need saved, you might still find it useful to have some extra cash on hand. Many potential home buyers are surprised at how expensive closing costs can be. According to Realtor.com, closing costs average between 2%-7% of a home’s purchase price. For a $200,000 home, that means between $4,000 and $14,000 on top of the down payment.

In addition to covering closing costs and inspection fees, you can use the money from your cash lump sum to make a larger down payment or fill your rooms with new furniture.

A Larger Down payment

When you make an offer on a home, in most cases you’ll have to put some money up as a down payment, and then borrow the rest as a mortgage. How much you need depends on the type of mortgage you’re looking for.

The more you have for a down payment, however, the less you’re required to take out as a mortgage which can save you thousands of dollars in interest payments. If you put up at least 20% of the purchase price as a down payment, you can save even more money since you won’t be required to pay for private mortgage insurance.

Buying a ‘Fixer-Upper’

If you want to get the biggest home possible, you can buy a place in need of repairs before it’s considered move-in ready. Many potential homeowners want to move into a house right away and they don’t want to waste the time repairing the floor or dealing with an outdated heating system.

For frugal buyers, however, these repairs create an opportunity to buy a nicer home than you could otherwise afford. To sell their property, many homeowners discount their asking price more than what it would cost to pay for the repairs.

Selling your future structured settlement or annuity payments gives you the cash you need to pay for these repairs up front, allowing you to take a fixer-upper and turn it into something wonderful.

Refurnishing Your New Place

You invested a lot of your hard-earned money to purchase your home. Now, you can make it match your unique personality. Paint the walls the color you want, replace the floors or carpeting, and add modern appliances. If your old furniture doesn’t work with your new decor, why not find something that does?

If this is your first home after renting an apartment, chances are you won’t have enough furniture for every room. For some rooms, buying pieces second hand is a great way to save money, but finding items that match your new decor, particularly in the kitchen and living room, can help tie the place together.

If you have a structured settlement or annuity, you can sell some of the payments to give you the cash you need to fill out your dream home.

We’ll Give You Options

Buying a home is an important financial decision and it’s one that you should carefully consider. At Peachtree Financial, we give you options for how you can sell your structured settlement or annuity payments and use that cash to achieve your goals, including buying a new home.